Stock futures rise as investors brace for July inflation report

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The market could be overbought ahead of the CPI

The market’s recent rally could expose stocks to a pullback from Wednesday’s CPI, according to BTIG technical strategist Jonathan Krinsky.

The strategist said in a note to clients on Tuesday evening that stocks have made counter-intuitive moves after CPI reports this year, with positioning ahead of the report appearing to be a key factor in the market’s reaction.

“At the end of the day, no one knows what the number will be or how the market will react to that number, but from our perspective things are coming in quite overbought, which leaves room for the market to fall after the number,” he said. writes Krinsky. .

—Jesse Pound

Elon Musk sells Tesla shares

Musk’s plan to buy Twitter has policymakers around the world worried.

Joe Skipper | Reuters

Elon Musk has sold Tesla shares worth around $6.88 billion – although he said earlier this year he had “no further TSLA sales planned”.

The Tesla CEO sold 7.92 million shares of the electric vehicle company, according to a succession of financial documents on Tuesday evening. Documents filed with the SEC showed that the transactions took place between August 5 and August 9. Tesla held its annual shareholder meeting on August 4.

Earlier this year, Musk took to social media to say he had no plans to sell Tesla stock after April 28. The billionaire investor is currently embroiled in a legal battle with Twitter, which he agreed to buy for around $44 billion.

Tesla shares rose 2% in pre-market Wednesday trading; Twitter is up 4%.

—Sarah Min

European stocks mixed ahead of key US inflation release

European markets were mixed on Wednesday morning as global investors awaited the key US inflation figure.

The pan-European Stoxx 600 was roughly flat late in the morning. Travel and leisure stocks climbed 1.3% while healthcare stocks fell 0.8%.

On the data front in Europe, consumer price inflation in Germany last July stood at 7.5% year-on-year and 0.9% month-on-month, according to official figures released on Wednesday, at roughly in line with expectations.

Earnings remain a key driver of individual stock prices in Europe. Ahold Delhaize, ABN AMRO, E.On, TUI Group, Metro, Deliveroo, Prudential and Aviva were among the top companies reporting before Wednesday’s bell.

-Elliot Smith

Consumer prices in China hit two-year high as pork prices rebound

Customers buying pork at a food market in Shanghai, China. Prices for pork, a staple in China, rose 20.2% in July 2022 from a year ago, official data showed.

Qilai Shen | Bloomberg | Getty Images

China’s consumer price index in July hit a two-year high as pork prices rebounded, official data showed on Wednesday.

Hog prices rose 20.2% in July from a year ago, marking the first increase since September 2020, according to data from Wind Information.

Additionally, hog prices posted their largest month-over-month increase on record – up 25.6%. Agricultural commodity analyst at Nanhua Futures, Bian Shuyang, said in a statement that farmers’ reluctance to sell – in the hope of securing higher prices in the future – has contributed to the surge in the price of the pork.

Bian added that live hog producers are now operating at a profit, indicating there is more supply to come. Two upcoming Chinese festivals in September and October will help sustain consumer demand for pork, he said.

Nonetheless, Wednesday’s inflation data continued to reflect lackluster demand in the Chinese economy.

The consumer price index rose 2.7% in July, missing expectations of a 2.9% increase, according to analysts polled by Reuters. Moreover, despite the summer holidays, the tourism price component rose only 0.5% in July compared to a year ago.

— Lee Ying Shan and Evelyn Cheng

Goldman, BoFA and Barclays name their top consumer stocks

Market watchers are looking to July’s inflation report – due out later today – for clues as to what the Federal Reserve will do next at its September meeting.

Ahead of the report’s release, CNBC Pro scoured Wall Street research to identify what investment banks are watching for signs of consumer weakness and their advice on how investors should position themselves in this environment.

Learn about the consumer-related stocks analysts at Goldman Sachs, Bank of America and Barclays like.

— Zavier Ong

Regional Fed chairs expected to speak tomorrow

In addition to Wednesday’s consumer price index report, markets will also equate Fedspeak from two regional bank presidents. They could provide additional insight into the central bank’s course of action and the scale of future rate hikes, especially at the September meeting.

Charles Evans, president of the Federal Reserve Bank of Chicago, will speak Wednesday at 11:00 a.m. ET at Drake University in Des Moines, Iowa.

Later, Minneapolis Fed President Neel Kashkari will speak during a panel on stagflation at the Aspen Economic Strategy Group.

—Carmen Reinicke

Key CPI report may show inflation has cooled

Shoppers at a grocery store in San Francisco, California, U.S., Monday, May 2, 2022.

David Paul Morris | Bloomberg | Getty Images

July’s inflation report may show prices have cooled – or so economists and investors hope.

Economists estimate for the July report that the consumer price index rose just 0.2%, less than the 1.3% it jumped in June, according to Dow Jones. That would bring the year-on-year pace of consumer inflation in July to 8.7%, down from the 9.1% seen in June.

If the reading is lower than last month, it may indicate that we have passed the peak of inflation and are starting to move in the right direction. This will indicate how much the Federal Reserve will raise rates going forward.

—Carmen Reinicke

Coinbase and Roblox crash after hours trading

Shares of Coinbase and Roblox are among the largest after-hours moves on Tuesday after reporting earnings that fell short of Wall Street expectations.

Coinbase fell more than 5% after reporting revenue showing a bigger than expected loss in the quarter, and the company missed revenue estimates.

Roblox plunged more than 16% after missing out on profits and revenue. Additionally, the company also reported just 52.2 million average daily active users, down from 54.1 million in the prior quarter.

—Carmen Reinicke

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